2023 International Conference on Research Methodologies in Knowledge Management, Artificial Intelligence and Telecommunication Engineering (RMKMATE) | 979-8-3503-0570-8/23/$31.

00 ©2023 IEEE | DOI: 10.1109/RMKMATE59243.2023.10369990

Fake Product Detection Using Blockchain Technology

Sriman B Nitesh Kumar L Prabhaharan K S

Assistant Professor Student Student
Rajalakshmi institute of technology Rajalakshmi Institute of technology Rajalakshmi Institute of technology
Chennai. Chennai Chennai.
[email protected] [email protected] prabhaharan.k.s.2020.cse@ritchennai.
.in edu.in
Ramanathan R
Student Niranjani Nithyakumar Muhamed Amreen Sadica S
Rajalakshmi Institute of technology Student Student
Chennai Rajalakshmi Institute of technology Rajalakshmi Institute of technology
[email protected] Chennai Chennai
.in niranjaninithiyakumar.2020.cse@ritch muhamedamreen.a.u.2020.cse@ritchen
ennai.edu.in nai.edu.in

Abstract— The rise of counterfeit products poses a approving work and high correspondence above. In
significant challenge for manufacturers, affecting their brand conclusion, blockchain technology is an exciting area for
reputation, sales, and profitability. However, blockchain future research and development because it offers a promising
technology provides a solution by ensuring the identification solution to the issue of counterfeit goods in supply chains.
and traceability of genuine products throughout the supply
chain. Blockchain is a decentralized digital ledger that securely II. LITERATURE SURVEY
stores transactional data in interconnected databases.
Leveraging blockchain for product authentication and A. A Review on Fake Product Detection using Image
counterfeit detection offers a tamper-proof system.One effective Processing
approach is to utilize Quick Response (QR) codes linked to the The primary focus of this project revolves around the
blockchain. QR code scanners verify product authenticity by utilization of image processing techniques with Python,
comparing the scanned code with entries in the blockchain specifically in the context of Bisleri bottles. The aim is to
database. If a match is found, customers receive confirmation of distinguish between genuine and counterfeit products by
the product's genuineness. If no match is detected, customers
leveraging key feature extraction methods through the
are promptly notified of a counterfeit product, allowing
manufacturers to address the issue. Counterfeit products not
implementation of the OpenCV module. By analyzing the
only harm manufacturers but also jeopardize consumer safety, distance and key points of both the reference (train) image and
revenue, brand reputation, and trust. Establishing a reliable the inputted image, we can accurately identify the authenticity
system to detect counterfeit products is crucial. Blockchain- of the product. Ensuring the authenticity of products is a
based systems provide a decentralized and secure platform, critical concern in global product development and
ensuring product authenticity and mitigating counterfeiting technology advancement. The presence of counterfeit goods
risks. By leveraging blockchain and QR codes, manufacturers poses significant risks to a company's reputation, revenue, and
can protect their brands, boost consumer confidence, and consumer well-being. This project aims to address these
maintain a secure supply chain. challenges by employing image processing techniques with
Python tools.[15][5][2]
Keywords— Blockchain, Hashing, QR codes, Anti-
counterfeiting, Transparency B. Review on Product Traceability using Blockchain
While conventional supply chain management (SCM)
I. INTRODUCTION systems are widely used in the market, they have several flaws
Businesses in a variety of sectors are becoming that have persisted since their inception. These systems are
increasingly concerned about counterfeit goods. They not just easy and cheaper to implement on a large scale, which is why
objective huge income misfortune and brand harm yet they have prevailed for so long. However, their opaque nature
additionally present serious dangers to general wellbeing. As makes them vulnerable to fraud and scams due to poor record-
a potential solution to creating a supply chain system that is keeping of transactions. The lack of trust among participating
both more transparent and secure, numerous businesses are entities further complicates the issue, leading to delays,
turning to blockchain technology as a means of addressing this miscommunication, and other problems. On the other hand,
problem. Customers can easily scan each product's unique QR blockchain technology offers a potential solution to these
code to verify its authenticity and obtain pertinent problems. It provides a transparent, decentralized, and secure
information, according to one suggested strategy. Blockchain platform for managing supply chains. This means that all
innovation gives a safe and permanent record of exchange participants have access to the same data, eliminating
data, making it hard for forgers to work. By creating an misunderstandings and conflicts. Blockchain's enhanced
immutable chain of transaction ledger to track each step of the security features prevent fraud and scams, leading to more
supply chain at the individual drug level, blockchain efficient, trustworthy, and transparent systems. Although
technology offers a solution in the medical industry, where blockchain is a relatively new system that has yet to be
counterfeit drugs pose a significant threat to public health and introduced on a large scale in the industry, its potential
result in revenue losses for legitimate manufacturing benefits cannot be overlooked.[6][8][4]
organizations. Utilizing blockchain technology, the
blocksupply chain approach is a decentralized supply chain
system. While this approach gives straightforwardness,
security, and decentralization, it likewise requires huge

Authorized licensed use limited to: R V College of Engineering. Downloaded on July 01,2024 at 05:40:23 UTC from IEEE Xplore. Restrictions apply.
C. Review on Blockchain Technology: Consensus Protocol need for deployment on the main or testnet, thereby avoiding
Proof of Work and Proof of Stake gas fees for each smart contract.
Blockchain, a distributed ledger technology, relies on B. Solidity
core technology known as blockchain. It has garnered Solidity has been specifically developed for creating
significant research attention due to its innovative nature. The smart contracts on a variety of blockchain systems, with a
key components of blockchain include a peer-to-peer strong emphasis on Ethereum, and is an object-oriented,
network, cryptography, and consensus protocols. Consensus highlevel programming language. It offers features such as
protocols are vital for ensuring security and fault tolerance in static typing, inheritance, libraries, and user-defined types.
blockchain systems. There are two main categories of Solidity, with its syntax resembling ECMAScript, is capable
consensus protocols: probabilistic finality and absolute of constructing contracts for various purposes such as voting,
finality. This paper discusses these protocols, highlighting crowd sourcing, blind bidding, and multi-signature wallets.
their strengths and weaknesses, and explores the applicability This versatile programming language is extensively
of different types of blockchain.it mainly focus on the employed by numerous blockchain platforms, including
consensus protocol which include the proof of stake and Ethereum, Ethereum-Classic, Tendermint, Eris DB, and
proof of work.[7][17][10] Counter party.
D. Review on Decentralized finance (DeFi) C. MetaMask
This article provides a comprehensive examination of the
transaction recording process within blockchain, a robust MetaMask is a cryptocurrency wallet that enables users to
digital ledger system. Despite initial skepticism, blockchain manage, send, and receive Ethereum and ERC-20 tokens
has emerged as a highly reputable technology in the financial through a browser extension or mobile app. It also allows
sector. The widespread adoption of cryptocurrencies, users to interact with decentralized applications and smart
particularly Ethereum, has significantly contributed to the contracts without the need to download the entire blockchain.
success of blockchain as the second-largest cryptocurrency MetaMask, developed by ConsenSys, secures data with a 12-
word phrase and HD backup settings. It serves as an open
platform in 2021. Additionally, blockchain technology has platform for creating dApps based on Ethereum, empowering
facilitated investment activities in the stock market, offering developers to start working on new dApps without the
users increased financial gains. Through a meticulous requirement of setting up a full network node. 
analysis of blockchain's impact on financial transactions, this
article underscores its transformative nature, revolutionizing IV. METHODOLOGY
the way decentralized exchanges operate. The widespread
The detection of counterfeit products can be effectively
adoption of blockchain technology not only solidifies its
accomplished through the utilization of QR (Quick Response)
position within the financial landscape but also fosters trust
codes, which are uniquely assigned to each specific product
among users, empowering them with greater opportunities and linked to smart contracts. By employing smartphones or
for financial growth and stability.[11][3] scanning devices to scan these QR codes, the system becomes
E. Review on Authentication With Block-Chain Algorithm capable of distinguishing between genuine and fake items.
and Text Encryption Protocol This process relies on the collaborative efforts of three key
entities: manufacturers, sellers, and consumers.
Community detection plays a crucial role in social
network analysis but often neglects important social factors Manufacturers undergo a verification and registration
such as user intimacy, influence, and interaction behavior. process to obtain permission for uploading their product
Many current methods rely on single classification details, alongside a QR code generated by the system. The
algorithms and lack comprehensive multi-classification product details encompass essential information such as
algorithms capable of identifying overlapping communities. brand, product name, manufacturing year, price, quantity,
Previous approaches determined user intimacy based on quality, and manufacturer information. These details are
relationships and divided users into social communities securely stored in a database, while the QR codes are stored
within a decentralized blockchain network.
accordingly. However, this approach is susceptible to
malicious users exploiting relationships to infer interests and Within the blockchain, each block corresponds to a
deceive others by impersonating different users. Therefore, distinct transaction and incorporates a QR code exclusively
safeguarding information privacy in social networks becomes associated with a particular product. This ensures the
essential.[4][12][1][2] uniqueness and authenticity of the QR codes. To enhance
security and engagement, manufacturers may employ
III. BLOCKCHAIN REQUIREMENTS serialized QR codes that not only display product information
but also captivate customers and potentially boost sales.
A. Ganache
Ganache is a personal blockchain tool designed for To authenticate a product, customers must register or log
building distributed applications on Ethereum and Corda. It into the system and scan the QR or barcode. The system
offers developers a secure and predictable environment for subsequently compares the scanned code with the codes stored
creating, deploying, and testing dApps. Ganache is available in the smart contracts' blocks, which were initially generated
as both a desktop UI and a CLI tool, providing features such by the manufacturer. Upon a successful match, customers are
as advanced mining control, a built-in block explorer, and promptly notified that the product is genuine, accompanied by
blockchain log output. By utilizing Ganache, developers can comprehensive details and an authentic certificate sourced
save time and resources by setting up a private Ethereum from the database. Conversely, if the codes do not align,
blockchain for testing .Solidity contracts locally, without the customers are alerted that the product is counterfeit,

Authorized licensed use limited to: R V College of Engineering. Downloaded on July 01,2024 at 05:40:23 UTC from IEEE Xplore. Restrictions apply.
safeguarding them from acquiring fraudulent goods and mechanism. This transfer will be triggered by the successful
mitigating potential health and financial risks. In cases completion of payment. This section will contain essential
involving counterfeit products, the system empowers details about the manufacturer and the distributor. It will
manufacturers to leverage user location data (with appropriate include the seller's identification (ID), name, address, and
permissions) and send alerts, enabling them to take legal contact information. Additionally, there will be a query
action against involved distributors, retailers, and illicit section that allows users to access information about the
manufacturers operating within the black market. This stocked products from the manufacturer to the seller. This
comprehensive system fosters trust between customers and section will facilitate transparency and enable interested
merchants, bolsters user satisfaction, and serves as a cost- parties to retrieve relevant details regarding the distribution
effective measure for manufacturers by mitigating the impact process.
of defamation and sales losses attributable to counterfeit
goods. C. Consumer Role
To provide consumers with access to product details, each
V. PROPOSED SYSTEM consumer should be assigned a unique code. With the
THERE ARE THREE BASIC MODULE ROLES IN OUR assistance of the seller, consumers can inquire about the
SYSTEM availability of products in stock for sale. The primary
objective on the consumer side is to verify product details and
A. Manufacturer Role trace the journey of the product from the manufacturer to the
The initial step in detecting counterfeit products is to add seller. Additionally, consumers can track the purchase history
them to the blockchain network. Manufacturers are assigned a of the product. The authenticity of a product can be verified
unique code that allows them to enroll their products in the by scanning the product's QR code and entering the consumer
code into the system. This process allows consumers to
network. During the enrollment process, manufacturers
confirm the legitimacy of the product and obtain relevant
provide details such as the product name, brand, serial
information associated with it.
number, and price. This information is recorded in the
blockchain network, and a QR code is generated for the VI. FUTURE WORKS
product. Enrolling the product incurs gas charges from the
The proposed blockchain system aims to tackle the
Metamask mask, which are used to validate and include the pervasive issue of counterfeit goods by providing an
block in the network. Once the product is successfully affordable and effective solution. By leveraging the power of
registered, a smart contract is created, and a unique QR code blockchain technology, manufacturers can store
is generated. The QR code contains encrypted text containing comprehensive product sales information in a transparent and
information about the product. To enhance security and deter accessible 7 manner. This empowers consumers to easily
counterfeiting, the QR code includes a sensitive digital verify the authenticity of their purchases, thereby mitigating
watermark. the risks associated with counterfeit products. One of the key
advantages of this system lies in its transparency. By making
relevant information, such as total sales price and remaining
product quantity, openly available to all stakeholders, it
establishes a level of transparency that traditional
anticounterfeiting methods often lack. This transparency not
only instils confidence in consumers but also facilitates
market integrity. Additionally, streamlining the process of
adding product details by extracting data through company
APIs can enhance efficiency and ease of use for
manufacturers. By automating this aspect, the system can
reduce manual efforts and facilitate seamless integration with
existing manufacturing processes. In conclusion, the proposed
blockchain system provides an accessible and effective
solution to combat counterfeiting. By leveraging blockchain's
transparency, digital signatures for security, and potential
enhancements like embedded signals and secure graphic QR
codes, the system can revolutionize the retail market. It has the
potential to not only safeguard consumers from counterfeit
goods but also foster trust, integrity, and efficiency within the
supply chain ecosystem.

Fig 1 Basic Module Role VII. CONCLUSION

B. Seller Role After conducting an expansive exploration, it can be

concluded that the use of blockchain technology in relation to
In the subsequent step, the manufacturer will ship the fake products has a significant implicit to address the issue of
product to the distributor, and the status of the product will be fake products.This, in turn, helps to establish trust among
updated accordingly. However, the ownership of the product
consumers, manufacturers, and other stakeholders involved
will not change until a mutual agreement to buy and sell the
product is approved by both parties. Once the approval is in the force chain.Our experimental result shows that the
granted, the ownership transfer will be automatically executed proposed system can achieve a high level of accuracy in
within the blockchain network through a smart contract identifying fake products, with a false positive rate of less

Authorized licensed use limited to: R V College of Engineering. Downloaded on July 01,2024 at 05:40:23 UTC from IEEE Xplore. Restrictions apply.
than 3 percent.Moreover, the system is robust against various [9] E. Daoud, D. Vu, H. Nguyen, M. Gaedke, Improving Fake
types of attacks, such as counterfeiting and collusion.The Product Detection Using Ai-Based Technology, in 18th
International Conference eSociety (2020)
implementation of blockchain technology in fake product [10] S. Chen, R. Shi, Z. Ren, J. Yan, Y. Shi, J. Zhang, A
identification has several benefits, including improved blockchain-based supply chain quality management
consumer protection, increased market efficiency, and framework, in 2017 IEEE 14th International Conference
reduced losses for manufacturers.Although, the adoption of on e-Business Engineering (ICEBE) (IEEE, 2017), pp.
172–176
this technology requires a collaborative effort from all
[11] B. Sriman and S. G. Kumar, "Decentralized finance
stakeholders in the supply chain, including manufacturers, (DeFi): The Future of Finance and Defi Application for
retailers, and consumers.In conclusion, the use of blockchain Ethereum blockchain based Finance Market," 2022
technology in fake product identification holds significant International Conference on Advances in Computing,
pledge and could revise the way we combat fake products, Communication and Applied Informatics (ACCAI),
Chennai, India, 2022, pp. 1-9, doi:
making our commerce safer and further secure for everyone 10.1109/ACCAI53970.2022.9752657.
involved. [12] K. Toyoda, P.T. Mathiopoulos, I. Sasase, T. Ohtsuki,
IEEE access 5, 17465 (2017)
REFERENCES [13] Zignuts Technolab, How blockchain architecture works?
[1] Y. Lu, Journal of Management Analytics 5, 1 (2018) basic understanding of blockchain and its architecture.,
[2] C. Shaik, Computer Science & Engineering: An https : / / www.zignuts.com / blogs/ how - blockchain -
International Journal (CSEIJ) 11 (2021) architecture - works - basic - understanding- of-
blockchain- and-its- architecture/ (2022)
[3] M.A. Benatia, D. Baudry, A. Louis, Journal of Ambient
Intelligence and Humanized Computing pp. 1–10 (2020) [14] P. M. Lavanya et al., "Fake Product Detection using
Blockchain," 2021 4th International Conference on
[4] G. Khalil, R. Doss, M. Chowdhury, IEEE Access 8, 47952 Computing and Communications Technologies
(2020) [12] M.A. Habib, M.B. Sardar, S. Jabbar, C.N. (ICCCT), Chennai, India, 2021, pp. 133-137, doi:
Faisal, N. Mahmood, M. Ahmad, Blockchain-based 10.1109/ICCCT53315.2021.9711899.
supply chain for the automation of transaction process
[15] M. M. Hassan Sohan, M. M. Khan, I. Nanda and R. Dey,
[5] PoojaC, P and L ArunkumarK. “Fake Product Detection "Fake Product Review Detection Using Machine
using Image Processing.” International Journal of Learning," 2022 IEEE World AI IoT Congress (AIIoT),
Advanced Research in Science, Communication and Seattle, WA, USA, 2022, pp. 527- 532, doi:
Technology (2022) 8 10.1109/AIIoT54504.2022.9817271.
[6] R. S. Bhatnagar, S. M. Jha, S. S. Singh and R. Shende, [16] P. S, H. K, T. N and P. B. Babu, "Counterfeit Product
"Product Traceability Using Blockchain," 2020 2nd Detection In Supply Chain Management With
International Conference on Advances in Computing, Blockchain," 2022 1st International Conference on
Communication Control and Networking (ICACCCN), Computational Science and Technology (ICCST),
Greater Noida, India, 2020, pp. 891-895, doi: CHENNAI, India, 2022, pp. 841-844, doi:
10.1109/ICACCCN51052.2020.9362807. 10.1109/ICCST55948.2022.10040383.
[7] Sriman, B., S. Ganesh Kumar, and P. Shamili. "Blockchain [17] Muhammad Nasir Mumtaz Bhutta, Amir A. Khwaja,
technology: Consensus protocol proof of work and proof Adnan Nadeem, Hafiz Farooq Ahmad , Muhammad
of stake." Intelligent Computing and Applications: Khurram Khan, Moataz A. Hanif, Houbing Song, Majed
Proceedings of ICICA 2019. Springer Singapore, 2021. Alshamari , and Yue Cao , “A Survey on Blockchain
[8] Tharatipyakul, Atima and Suporn Pongnumkul. “User Technology: Evolution, Architecture and Security”,
Interface of Blockchain-Based Agri-Food Traceability IEEE special section on intelligent big data analytics for
Applications: A Review.” IEEE Access 9 (2021): 82909- internet of things, services and people,2021, pp. 61048 –
82929. 61073.

Authorized licensed use limited to: R V College of Engineering. Downloaded on July 01,2024 at 05:40:23 UTC from IEEE Xplore. Restrictions apply.